Ferguson Plc Intrinsic Value Calculation – Acadian Asset Management LLC Increases Ferguson plc Holdings by 43.3% in Second Quarter
September 17, 2024
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FERGUSON PLC ($NYSE:FERG), formerly known as Wolseley plc, is a global leader in the building materials and plumbing supplies industry. One of the key factors contributing to Ferguson’s success is its strategic partnerships with leading brands in the industry. The company has long-standing relationships with top suppliers, allowing it to offer a diverse range of products to its customers. Along with its strong supplier network, Ferguson also has a well-established distribution network, making its products easily accessible to customers across the globe. In recent years, Ferguson has been actively expanding its market reach through acquisitions and investments. This has resulted in the company’s continued growth and solid financial performance. In the second quarter of this year, Acadian Asset Management LLC, a world-renowned investment firm, increased its holdings in Ferguson plc by 43.3%. This significant increase in ownership demonstrates the confidence of investors in the company’s potential for growth.
The 13F filing by Acadian Asset Management LLC also highlights the growing interest in Ferguson’s stock, potentially indicating a positive outlook for the company’s future performance. As Ferguson continues to expand its operations and invest in new markets, its stock is expected to show strong growth potential in the coming years. In addition to its financial success, Ferguson is also committed to sustainability and social responsibility. The company has implemented various initiatives to reduce its environmental impact and promote ethical business practices. This focus on sustainability not only benefits the planet but also helps strengthen Ferguson’s reputation as a responsible and trustworthy company. With its established reputation, strategic partnerships, and commitment to sustainability, Ferguson is poised to continue its success in the building materials industry.
Analysis – Ferguson Plc Intrinsic Value Calculation
After conducting a thorough analysis of FERGUSON PLC‘s financial statements, I have determined that the company’s intrinsic value is approximately $162.7 per share. This value was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as revenue, earnings, and cash flow. Currently, the stock is trading at $193.07 per share, which indicates that it is overvalued by 18.7%. This means that the market price of FERGUSON PLC’s stock is higher than its true intrinsic value. As an investor, this would be a cause for caution as it suggests that the stock may not be a good buy at its current price. In order to determine whether a stock is a good investment, it is important to consider both its intrinsic value and its market price. The larger the gap between these two values, the riskier the investment may be. In the case of FERGUSON PLC, the significant overvaluation of 18.7% suggests that the stock may be overpriced and therefore not a wise investment at this time. Overall, while FERGUSON PLC may be a strong and successful company, it is important for investors to carefully consider the valuation of its stock before making any investment decisions. By examining the financial statements and understanding the intrinsic value of a company, investors can make more informed choices and potentially avoid overpaying for stocks. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ferguson Plc. More…
| Total Revenues | Net Income | Net Margin |
| 29.36k | 1.76k | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ferguson Plc. More…
| Operations | Investing | Financing |
| 2.42k | -860 | -1.5k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ferguson Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.69k | 10.27k | 24.66 |
Key Ratios Snapshot
Some of the financial key ratios for Ferguson Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 17.2% | 8.5% |
| FCF Margin | ROE | ROA |
| 6.9% | 29.0% | 9.9% |
Peers
The company operates through two segments, Wholesale and Retail. The Wholesale segment involves the distribution of plumbing and heating products to professional contractors, builders, and industrial customers. The Retail segment involves the sale of plumbing and heating products to do-it-yourself consumers through company-operated stores. The company was founded in 1884 and is headquartered in London, the United Kingdom. Ferguson’s competitors include W.W. Grainger Inc, Watsco Inc, and Fastenal Co. These companies also engage in the distribution of plumbing and heating products.
– W.W. Grainger Inc ($NYSE:GWW)
W.W. Grainger is a Fortune 500 company and one of the largest suppliers of maintenance, repair, and operating products in the United States. The company has a market cap of $30.17 billion and a return on equity of 58.61%. Grainger’s products are used in a variety of industries, including manufacturing, healthcare, government, and education. The company operates through a network of over 1,700 branches and distribution centers across the United States.
– Watsco Inc ($NYSE:WSO)
Watsco is one of the world’s largest manufacturers and distributors of air conditioning, heating and refrigeration equipment. The company has a market cap of 10.72B as of 2022 and a return on equity of 27.3%. Watsco products are used in residential, commercial and industrial applications. The company’s products are sold under the brands Carrier, Bryant, Payne, Honeywell and Trane.
– Fastenal Co ($NASDAQ:FAST)
The company has a market cap of 29.59B as of 2022 and a Return on Equity of 28.04%. The company is engaged in the business of manufacturing and distributing fasteners and other industrial and construction supplies. The company operates through two segments: Industrial and Construction. The Industrial segment offers fasteners, tools, and other supplies for use in manufacturing, repairs, and maintenance applications. The Construction segment provides fasteners and other supplies used by professional contractors in the construction of commercial, institutional, and industrial buildings.
Summary
Acadian Asset Management LLC increased its stake in Ferguson plc by nearly half during the second quarter. This move suggests confidence in the company’s performance and potential for growth. Investing analysis indicates a positive outlook for Ferguson plc, with the potential for strong returns.
Investors should closely monitor any further developments and financial reports from Ferguson plc to assess its performance and potential for investment. Overall, the current investing analysis points towards a favorable investment opportunity in Ferguson plc.
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